The Sussex economy is performing better than most other regions of the country.

With its high concentration of IT, finance and leisure-based industries, the county has not so been badly hit by the decline in manufacturing which has hurt many other parts of the UK.

The latest economic review from Sussex Enterprise says growth in Sussex increased by an estimated 3.6 per cent in 2000 through a strong increase in productivity, 0.6 per cent higher than the national figure.

Last year was the eighth successive year that economic growth in Sussex has been above the national average.

Mark Froud, director of policy at Sussex Enterprise, said: "One main reasons for this growth is many Sussex businesses increasing their investment, both in equipment and in developing their employees. This has lead to strong productivity growth, enabling many companies to become more competitive and improve profitability."

The Crawley/Gatwick area led economic prosperity for most of the Nineties. But this strength has now started to spread along the A23 corridor and into Brighton and Hove.

Mr Froud said: "Prosperity in Brighton and Hove can be measured by GDP (Gross Domestic Product) per capita. The GDP in the Brighton area rose 4.4 per cent in 2000, compared to 3.6 per cent across the whole of Sussex and four per cent in the Crawley/Gatwick area.

"This dynamic economic growth can be attributed to a number of factors, including a favourable concentration of key growth industries, the availability of a large workforce and the expansion of some key organisations."

The report highlights two important areas of concern as possible barriers to economic growth. These are: the need to develop the workforce and to spread economic benefits along the coast and throughout Sussex.

Mr Froud said: "The Government and the business community need to take more positive steps to improve the business infrastructure in Sussex.

"The economic growth could be channelled along the coast in both directions, if there was increased investment in transport links and the availability of quality sites and premises. We also have some skills shortages, which need to be addressed by an increase in training and development of employees."